HAYNESVILLE PLAY MATURES

Two database reviews today brought home to me how far the Play has progressed and that it has entered a new phase of development.

 

 I check the public hearing schedule each day to record Haynesville unit applications, as I have done for almost three years now.  The spreadsheet that I use to track the unit applications has 37 lines per page.  Over the last half of 2010 each page has contained the applications for 2 to 4 hearing dates.  The page I am working on currently contains the applications for 11 hearing dates.  And I still have 2 lines left.  The formation of HA Drilling & Production Units has slowed to a crawl.  IMO, this indicates that HA operators have ceased step out drilling and are now focused on production drilling.  A number of recent company reports have stated this shift in focus.  Most recently EnCana.

 

I regularly check the "Wells Permitted By Date"portion of the database as I maintain a running list of new permits for an industry client in their area of operation.  The list of District 6 permits for Monday through Wednesday contains 37 total.  27 are Haynesville horizontal wells.  Of those 27, 9 are permits for the initial well in a unit or section.  18 of the permits are for alternate unit wells. All but 2 are EnCana/SWEPI wells.  Of those 9 permits for initial wells, Chesapeake had 5, SWEPI - 1, Petrohawk - 1, EXCO - 1 and J-W - 1.

 

Development activity has been on this trend through the last quarter of 2010.  And the continuing supporting data makes it plain to me that we will likely see this for some time to come.  I am hopeful that future improvement in nat gas prices will stimulate a return to step out drilling.  The EnCana corporate report mentioned previously tends to give the impression that ECA and SWEPI think they have performed sufficient exploration to model the  majority of the basin over 30 months of drilling.

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Replies to This Discussion

Permalink Reply by Spring Branch,mineral owner on February 19, 2011 at 9:20
Catching any fish, Skip?
Permalink Reply by Spring Branch,mineral owner on February 19, 2011 at 9:34

Shirley, I'll save Skip the trouble.  I count 6.  They are:

1)Section 31 of 15N,10W        #242805

2)Section 18(7) of 11N,13W    #242763

3)Seection 26 of 14N,12W      #242778

4)Section 21 of 9N,13W         #242762

5)Section 18(7) of 15N,13W   #242764

6)Section 22 of 10N,12W       #242779

All were permitted between Feb. 14-16 by Chesapeake.

Permalink Reply by Skip Peel - Mineral Consultant on February 19, 2011 at 9:35
Haven't wetted a hook.  Taking a break to catch up on emails.  The boat parade is over but I can hear the party still going strong downstairs.
Permalink Reply by Skip Peel - Mineral Consultant on February 19, 2011 at 14:09
Robert, sometimes you find information in unfamiliar reports.  Or in the headings of well logs.
Permalink Reply by brs on February 21, 2011 at 5:01
Skip, What have you heard about property on Sligo Rd., Section 25,24,7,8,21 etc. T17-12R. Encana has leased, any drilling scheduled or are they gonna let it expire ? Thanks for any info. BRS
Permalink Reply by Skip Peel - Mineral Consultant on February 21, 2011 at 5:48

brs, considering that Encana went to the trouble of dissolving and reforming units encompassing most of the sections you mention and that the effective Order 8-N-20 for the Sligo Field was not issued until Nov. 9, 2010, I'd say it's a fair bet that Encana intends to drill them prior to expiration if there is sufficient term remaining on the leases or they have extension options.

 

Permalink Reply by smith1 on February 21, 2011 at 11:34
I looked on Sonris and can not find anything about drilling yet for 161030, Elm Grove Field. Any ideas? Our lease expires August 2011.
Permalink Reply by Skip Peel - Mineral Consultant on February 21, 2011 at 11:44
Since Petrohawk holds the unit order for Section 30 and permitted a well on Nov. 16, 2010 and has three rigs drilling in this area of the Play,  I'd say the chances are 99% that they will drill your section.
Permalink Reply by smith1 on February 21, 2011 at 12:23
t
Permalink Reply by smith1 on February 22, 2011 at 6:05
thanks
Permalink Reply by Bobi Carr ("parker") on March 10, 2011 at 15:38

Encana just lost the 573 acres at the Pecan Station.  They lost another 500 +/- just South of Mike Woods park.

 

The 1500 acres on 71 between Sligo and Caplis Sligo will expire soon.

 

 

Permalink Reply by ALongview on March 10, 2011 at 15:47
In your opinion, what happens to this acreage and others like it that will be let to expire either due to time, money, low gas prices, or all of the above?

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